When evaluating a company's solvency, an investor's major concern is whether all debt has been properly recorded.

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When evaluating a company's solvency, an investor's major concern is indeed whether all debt has been properly recorded, but this concern extends beyond just the recording of debt. Solvency refers to the ability of a company to meet its long-term financial obligations and to sustain its operations over the long term. To accurately assess a company's solvency, an investor should consider several factors:
1. **Accurate Recording of Debt**: Investors need to ensure that the company has accurately recorded all of its debt obligations on the balance sheet. This includes both short-term and long-term liabilities, as well as off-balance sheet financing that could potentially impact the company's financial position.
2. **Debt Maturity Profile**: Understanding when the company's debt obligations are due is crucial. A concentration of debt maturing in the short term could put pressure on the company's liquidity, while longer-term debt provides more time for the company to generate the necessary cash flows.
3. **Debt-to-Equity Ratio**: This ratio provides insight into the company's capital structure and how much of its operations are financed by debt versus equity. A high debt-to-equity ratio may indicate that a company is over-leveraged, which could be a risk to solvency if earnings do not suffice to cover debt repayments.
4. **Interest Coverage Ratio**: This ratio measures the company's ability to pay interest on its debt from its earnings before interest and taxes (EBIT). A low interest coverage ratio could signal potential solvency issues if earnings decline.
5. **Cash Flow Analysis**: Evaluating the company's cash flow statements can provide a clearer picture of its ability to generate cash to meet debt obligations. Positive cash flows from operations are a good sign that the company can sustain its debt payments.
6. **Contingent Liabilities**: Investors should be aware of any contingent liabilities that could become actual liabilities in the future, such as legal disputes or guarantees, as these could affect the company's solvency.
7. **Covenants Compliance**: Loan agreements often contain covenants that the company must adhere to. Breaching these covenants can lead to accelerated debt repayment demands or other penalties, which could impact solvency.
8. **Economic and Industry Conditions**: The overall economic environment and industry-specific factors can influence a company's solvency. For example, a downturn in the industry could reduce revenues and cash flows, making it harder to service debt.
In summary, while ensuring that all debt is properly recorded is a fundamental aspect of evaluating a company's solvency, investors must also consider a range of other financial metrics and qualitative factors to gain a comprehensive understanding of the company's ability to meet its long-term obligations and maintain financial health.

When Evaluating a Company's Solvency, an Investor's Major Concern Is